107 Pilsener

West End Brewing Co, Lion Nathan’s South Australian beer company, launched a new Pilsener in October, brewed with hops from Bohemia. 007, 101, 107 ...why the mysterious label? It may be mysterious to the rest of the world, but every punter in Adelaide knows that West End’s address is 107 Port Road Thebarton. There you go.

Gone teetotal

Terry Davis, head of the international wine division of the Foster’s Group, is to be appointed Managing Director of Coca-Cola Amatil. In 14 years in the wine business he built Cellarmasters into the world’s second largest wine club business. Rumour had it that he was the frontrunner in the race to replace Foster’s CEO, Ted Kunkel.

CUB buys spirits brands

Carlton and United Breweries (CUB), a division of the Foster’s Group, has purchased the spirits brands portfolio of Tarac Liquor Marketers for just over A$2.2 million. Brands include a vodka, bourbon and scotch brand. James King, Managing Director of CUB, said in a press release that this purchase would enhance CUB’s spirits arm, The Continental Spirits Company, and allow the company to build its sales and marketing activities throughout Australia.

To be sipped not chuggallugged

If you saw the Kiwis chuggallugging their beer steins at the Munich Oktoberfest you would not have thought that back home they have taken to sipping their beer. Beer consumption in New Zealand has witnessed a steady decline over the past ten years. According to market research by Canadean, per capita consumption in New Zealand is now 15% lower than in the 1990s. Domestic production has fallen while imports have almost doubled in the past six years as consumers are purchasing lower volumes but demanding greater choice. In 2000, beer consumption was 3.2 million hl, for 2001 it is expected to decline to 3.15 million hl.
New Zealand’s two main brewers - Lion Nathan (52%) and Dominion Breweries (34%) - are attempting to adapt to the shrinking market..

Words of wisdom

Carlton and United Breweries Managing Director, James King, was quoted as saying that “(Australian) consumers are drinking less but better (quality).- What could he possibly mean? That consumers are increasingly choosing a glass of wine over a glass beer because of its better quality? According to the Australian Hotels Association, full strength beer accounted for 39% of the volume of alcohol consumed in the 2000/2001 financial year while wine was close behind at 32%. Spirits made up 14% of the market volume consumed, light to mid-strength beer 10% and RTDs (Ready-To-Drink mixes) 5% but growing fast. In the 2000/2001 financial year RTD consumption has risen high from 10.5 million cases to 16.5 million.

Not recommended for children

Australian and New Zealand ministers approved a new standard which allows energy drinks (or FCBs - Formulated Caffeinated Beverages) to be manufactured in Australia, whereas previously they had to be imported from New Zealand. It was decided that energy drinks such as V, Red Bull, Black Stallion, Ikon, Lipovitan, Red Eye Gold and Lift Plus, which contain up to 320mg of caffeine a litre, must carry a label saying: "this food contains caffeine" and the accompanying warning that "this food is not recommended for children, pregnant or lactating women and individuals sensitive to caffeine."
The standard took effect in August. The compulsory labelling is not expected to affect
the market for energy drinks adversely currently valued at A$150 million.".

Here they ride again

Just a month after Lion Nathan abandoned (or was forced to make do with a 44% stake) its protracted take-over bid for Montana Wines in New Zealand, the brewer turned round on its heels and made offers for two medium sized South Australian wine companies, Banksia and Petaluma. Lion Nathan offered to pay A$70.6 million for Banksia and A$222 million for Petaluma. Petaluma was listed in 1993 and owns South Australian, Victorian and Western Australian wineries as well as the Argyle Winery in Oregon, USA. Banksia was listed only 10 months ago. But lo and behold, who was also buying shares in Lion Nathan’s objects of desire? Well, British drinks giant Allied Domecq. At close of trade on 5 October Allied Domecq had 15% of shares in Banksia and was still buying shares in Petaluma..

Make your own wine

It was only a matter of time. Adelaide-based Coopers Brewery has recently launched a new home wine making kit in Canada. The company expects to have sales in this market of at least A$10m a year by 2006. Canada is the world’s largest home wine making market. Coopers’ wine kits are made from quality chardonnay and shiraz grapes. Coopers Brewery has more than 20 years of experience in the production of homebrew kits which it distributes all round the world.

Sign of the times

Clever marketing or they have developed a palate for wine. At the end of a hard day’s play, Australia’s Test cricketers can soon celebrate with a glass of Barossa Valley shiraz or a Clare Valley riesling. By all appearances, the days are gone that beer was the only tipple of choice of Australia’s finest Men in White. Beringer Blass Wine Estates, a division of the Foster’s Group, has signed a three-year deal to become the official wine sponsor of the Australian Cricket Board.

SAB buys second brewer

For US$17.6m, South African Breweries bought a second Indian brewer, MBL, or Mysore Breweries. The group, which is listed on the Bangalore Stock Exchange, operates two breweries with a combined capacity of 480 000 hl beer in Bangalore and Aurangabad. Both breweries employ a total of 250 people. Mysore’s leading brand is Knock Out, which, as it name indicates, has a high alcohol content of about 7% ABV. Last October, SAB bought Narang Brewery, near Lucknow in the state of Uttar Pradesh in the north of India. It is estimated that SAB’s share of the Indian beer market, which is highly fragmented and regional in character, will be in excess of 6%. In neighbouring China, SAB expects to brew 18.3m hl beer this year.